Lucaria · Products · Corporate Asset-Based Lending
$2M – $50M+Corporate Asset-Based Lending
Revolving and term facilities sized by a borrowing base — advance rates against receivables, inventory, machinery, and real estate — for companies from roughly $10M in revenue up through the middle market.
Who it’s for
- Asset-rich companies whose receivables and inventory can carry more credit than the income statement suggests.
- Businesses in turnaround, acquisition, or high-growth mode — the situations cash-flow lenders shy away from.
- Companies asked to leave their bank, or entering or exiting a restructuring, that need a lender who underwrites the collateral, not the story.
Why Lucaria
- Availability is formula-driven — as receivables and inventory grow, the line grows with them.
- We know which lenders stretch on NOLV appraisals, FILO tranches, and second liens — and which quietly don’t.
- One desk reaches bank ABL groups and non-bank specialists, so a covenant-heavy quote isn’t your only quote.
Market bands, told straight
Honest numbers
Advance rates in the ABL market cluster in well-known bands. Availability is a formula — so here is the formula.
- Accounts receivable
- 80–90% of eligible A/R — up to ~95% for clean, investment-grade books
- Inventory
- 50–65% of cost — up to ~85% of NOLV with a current appraisal
- Machinery & equipment
- 75–85% of NOLV
- Real estate (in the base)
- 60–70% of value
- Typical term / close
- 3–5 year facilities · 4–8 weeks from term sheet
Market bands, not a quote — eligibility carve-outs (concentration, cross-aged accounts, slow-moving stock) move the number, and we walk your base before any lender does.
How we structure it
Structured on the borrowing base
A worked example: $8M of eligible receivables at 85% plus $4M of inventory at 55% supports roughly a $9M line. We build that math with you first, then take it to lenders who will honor it.
- FILO and stretch tranches that add availability beyond the standard formula
- Second-lien and split-collateral structures behind an existing bank facility
- Field-exam and appraisal preparation, so the base survives diligence intact
- Facilities built to enter — or exit — a restructuring, told straight
The honest read
Why banks say no — and why that isn’t the end
- The bank underwrites your income statement, so a rough year reads as risk even when the balance sheet is strong.
- Bank ABL groups often want large facilities and pristine reporting — mid-market books get passed over.
- A turnaround or acquisition story triggers committee caution regardless of collateral coverage.
Common questions
Corporate Asset-Based Lending, answered straight.
- Will my customers know I have an ABL facility?
- Usually not. Most facilities are non-notification: you keep collecting your receivables exactly as before, and customers see no change. Lenders verify the collateral through periodic field exams, not by contacting your customers.
- What is a borrowing base?
- The formula that sets how much you can draw: eligible receivables and inventory (and sometimes equipment and real estate) each get an advance rate, and the sum is your availability. As the assets grow, availability grows — no re-application required.
- My company is in a turnaround. Is that disqualifying?
- No — it is often the reason to use ABL. Asset-based lenders underwrite the collateral, not last year’s story, and facilities are routinely structured for companies entering or exiting a restructuring. We say which lenders have real appetite for that.
- How is this different from a regular line of credit?
- A revenue-sized line is capped by your income statement. An ABL facility is sized by the borrowing-base formula against your assets — which is why an asset-rich company can often borrow meaningfully more this way.
- What does the field exam involve?
- A periodic review of your receivables aging, inventory records, and controls — scheduled, professional, and predictable. We prepare your base before the first exam so diligence confirms the number instead of cutting it.
- Why is this a business loan?
- Every facility we arrange is a commercial loan to an operating company or its holding entity, secured by business assets and used for business purposes — working capital, acquisitions, restructuring. Lucaria arranges business-purpose credit only, never financing for personal, family, or household use.
No obligation
Tell us what you need.
No credit pull to start. We’ll show you the honest options for corporate asset-based lending — and if borrowing isn’t the answer, we’ll say so.